Trump threatens to fire Fed chair Powell if he doesn't leave in May

US President Donald Trump threatened to fire Federal Reserve Chair Jerome Powell if Powell does not step aside when his term expires on May 15, escalating a months-long dispute over interest rate policy.

"I'll have to fire him, OK, if he's not leaving on time," Trump said during an interview on Fox Business. "I've held back firing him. I wanted to fire him, but I had to be controversial, you know? I want to be uncontroversial."

Powell's term officially ends May 15, but he is planning to remain in post until his successor, Kevin Warsh, is confirmed by the Senate. Under law and precedent, Powell can stay on temporarily in the role until Warsh is confirmed. Powell also has the option to remain at the Federal Reserve as a governor until 2028.

Trump and Powell have been locked in a bitter dispute over the central bank's interest rate policy. Trump has repeatedly called for the Fed to cut rates, arguing that Powell is doing a "bad job" and that "he should be lowering interest rates." Powell has resisted these calls.

The confirmation process for Warsh, Trump's nominee to replace Powell, has faced obstacles in the Senate. Republican Senator Thom Tillis, an influential member of the committee overseeing Federal Reserve chair nominations, has threatened to block Warsh's confirmation. Trump has also doubled down on pressure regarding a criminal investigation into renovations of the Federal Reserve's headquarters, which threatens to further delay Warsh's confirmation.

If Warsh is not confirmed before Powell's term expires, Powell has indicated he plans to stay on temporarily in the post, citing what the law requires and what has been done in previous instances.

Trump said he had previously held back from firing Powell despite wanting to do so, citing a desire to avoid controversy.